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SEC Action on IFRS Could Come Early in 2010

SEC Commissioner Elisse B.
Walter on Wednesday said she expects the commission to “consider
further action” on IFRS adoption early next year.

Walter’s
comments at an AICPA conference followed remarks by SEC Chief Accountant James
Kroeker on Monday in which he said more information about IFRS
adoption would be forthcoming “in the short term.”

The
SEC proposed its IFRS convergence road map in August 2008 under
former Chairman Christopher Cox. Under the proposal, the SEC would
decide in 2011 whether to proceed with rulemaking to require that
U.S. issuers use IFRS beginning in 2014. Early adoption beginning
with filings in 2010 would be allowed for certain issuers.

But
during her Senate confirmation hearings in January, newly appointed
Chairman Mary Schapiro expressed reservations about the road map,
and the commission subsequently extended the public comment period.
Since then, both Kroeker and Schapiro have said the commission would
clarify its position on IFRS “this fall.”

“As
with any important policy question, we are proceeding deliberately
and thoughtfully. We are working diligently to make sure we
understand all of the advantages and disadvantages,” Walter said in
her speech Wednesday. “At this stage in our review process, I expect
we will likely consider further action sometime in early 2010.”

Walter
also discussed the ongoing Congressional debate over financial
regulation in the wake of the economic crisis, highlighting the
importance of maintaining the independence of the standard-setting
process for accounting standards.

“Oversight of the
independent private-sector standard setter should not become
entangled with other regulatory priorities, such as addressing
systemic risk,” Walter said. “Instead, accounting standards should
remain a means of producing neutral and objective measures of the
financial performance of public companies. This is critical if we
are to protect the integrity and credibility of accounting
standards, which are the backbone of our financial reporting system.”